Pertamina pitches $15m project

JAKARTA - Indonesia's state-owned petrochemical giant Pertamina has invited agencies to pitch for a US$15 million above- and below-the-line campaign to encourage Indonesians to switch from kerosene to liquefied petroleum gas (LPG).

The pitch is part of the Government's efforts to cut household fuel subsidies and save an estimated 20 trillion rupiah (US$2.2 billion) a year.

Pertamina began replacing kerosene with LPG in November 2007, and reportedly hopes to convert six million families across Indonesia to the cheaper fuel by the end of 2008.

A large number of agencies are understood to have been invited, including Saatchi & Saatchi and OgilvyAction which holds Pertamina's below-the-line business.

Indonesia has been bedeviled by kerosene shortages in recent years amid allegations that Pertamina has been withdrawing stocks of the fuel to drive conversion to LPG.